AMKR determined to achieve 100% utilization of iron ore production facilities, increase steelmaking from 30% to 50% - CEO
KYIV. May 24 (Interfax-Ukraine) - The ArcelorMittal Kryvyi Rih (AMKR) steelworks in Ukraine's Dnipropetrovsk region is determined to achieve 100% utilization of its iron ore production and processing facilities and increase steelmaking from the current 30% to 50% in the near future, AMKR CEO Mauro Longobardo said in an interview for forbes.ua.
The company's performance in 2021 was best since 2008, but now it has spent almost everything it earned then, he said.
"As concerns the production sector, it's operating. We're increasing production. To resume production 100% as early as in June, it is important to eliminate the danger for the working personnel. As for steel products, one of the four blast furnaces is operating now. We've settled export issues from the logistics standpoint. Problems with receiving feedstock remain in place. As soon as we make sure that we have enough of it, we'll resume production in full," he said.
AMKR plans to bring ore production to 100% and steelmaking to 50%, while selling the surplus of iron ore concentrate in the meantime, Longobardo said.
As the mothballed blast furnaces are relaunched, the volume of ore concentrate sold will be reduced. In all, AMKR plans to sell 650,000 tonnes of products in June, including 200,000 tonnes of metal products and 450,000 tonnes of iron ore concentrate, which makes about 70% of the company's capacity, he said.
"In a normal situation, AMKR can deliver 500,000 tonnes of steel products and up to 250,000 tonnes of iron ore concentrate a month. As soon as the situation changes, we'll be returning to our core specialization, steelmaking," Longobardo said.
AMKR cannot receive enough coal for all of its blast furnaces at present, he said. The company normally used to purchase 300,000 tonnes of coal a month, and Kazakhstan served as one of the main suppliers, while now the delivery routes are blocked, and AMKR has to explore alternative sources and bring in coal by rail, he said.
AMKR is also experiencing problems with selling its products, as its international customers are not certain whether they can receive their orders in time, Longobardo said. Therefore, instead of delivering its products directly to customers, AMKR now has to transport them first to safer places, such as Poland, from where customers can purchase them, he said.
In commenting on the financial aspect of the company's performance in Ukraine, Longobardo said it is likely to be loss-making, although he hoped it might break even in 2022.
ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, in particular rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, in particular, PJSC ArcelorMittal Beryslav.